The Remodeling Market Index (RMI) dropped 3 points to 55 in the second quarter of 2017, according to the National Association of Home Builders (NAHB). Although the RMI posted a decrease, it has been at or above 50 for 17 consecutive quarters. A reading above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower (Figure 1).
The RMI is a composite measure of two sub-indices: the current market conditions and future market indicators. Similar to the overall RMI, the current market conditions index stood at 55. Among its components, major additions and alterations waned three points to 54, minor additions and alterations decreased six points to 53, and the home maintenance and repair component fell three points to 57 (Figure 2).
The future market indicators index also posted a reading of 55. Among its components, calls for bids fell three points to 56, amount of work waned five points to 53, and the backlog of remodeling jobs dropped four points to 58. Meanwhile, appointments for proposals rose one point to 55 (Figure 3).
Although market activity has been strong, remodelers face continuing challenges, particularly with the cost and availability of labor. In this quarter’s survey, 84 percent of respondents reported that the cost/availability of labor is one of the most significant challenges they face.